Nikolai Stanchev pointed out that the insurance portfolio in Bulgaria continues to be dominated by motor insurance, which has the largest share. On the other hand, property and life insurance remain at a very low level, which is contrary to the trends in more developed European markets. The level of insurance protection of real estate remains very low - less than 10% of properties are insured, with a large part of this coverage being mandatory due to mortgage loans. The main reason, according to him, is insufficient awareness of people about the benefits and accessibility of home insurance.
Health insurance is experiencing a significant pace of development supported by growing inflation in recent years among the factors. Health insurance has become a standard social benefit, especially in large companies, with 86% of them offering it to their employees.
Agricultural insurance has seen increased interest from producers thanks to the new scheme with 70% of premiums subsidized from the Agriculture Fund. This trend is expected to continue - climate change and more frequent disasters make insurance even more necessary, Nikolai Stanchev noted.
Regarding the upcoming introduction of the bonus-malus system, the Chairman of the Board explained that according to the new legislation, insurers will have access to the entire damage history of vehicles through the Guarantee Fund registry and will be able to base their pricing on this information.
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